Ethical Considerations for Professionals

Question 1

four overarching principles contained in the IMA statement of Ethical Professional Practice

Answer 1

1. Honesty
2. Fairness
3. Objectivity
4. Responsibility

Question 2

four specific statements contained in the IMA statement of ethical professional practice

Answer 2

1. Competence
2. Confidentiality
3. integrity
4. credibility

Question 3

competence

Answer 3

1. maintain an appropriate level of professional leadership and expertise by enhancing knowledge and skills
2. perform professional duties in accordance with relevant laws, regulations, and technical standards
3. provide decision support information and recommendations that are accurate, clear, concise, and timely. Recognize and help manage risk

Question 4

confidentiality

Answer 4

1. keep information confidential except when disclosure is authorized or legally required
2. inform all relevant parties regarding appropriate use of confidential information. monitor to ensure compliance
3. refrain from using confidential information for unethical or illegal advantage

Question 5

integrity

Answer 5

1. mitigate actual conflicts of interest. regularly communicate with business associates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts of interest
2. refrain from engaging in any conduct that would prejudice carrying out duties ethically.
3. abstain from engaging in or supporting any activity that might discredit the profession.
4. contribute to a positive ethical culture and place integrity of the professional above personal interests.

Question 6

credibility

Answer 6

1. communicate information fairly and objectively
2. provide all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses, or recommendations.
3. report any delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.
4. communicate professional limitations or other constraints that would preclude responsible judgment or successful performance of an activity

Question 7

if the organization does not have established policies, the member should consider the following course of action.

Answer 7

• the resolution process could include a discussion with the member’s immediate supervisor. if the supervisor appears to be involved, the issue could be presented to the next level of management.
• IMA offers an anonymous hotline that the member may call to request how key elements could be applied to the ethical issue.
• the member should consider consulting his or her own attorney to learn of any legal obligations, rights, and risks concerning the issue.

Question 8

examples of conflict of interest

Answer 8

-having a substantial financial interest in supplier, customer, or distributor
-using privileged information gained from one’s official position to enter transactions for personal gain.
-a manager providing paid consultancy services to clients, suppliers, or other business partners of the company.

Question 9

two types of fraud

Answer 9

-fraudulent financial reporting
-misappropriation of assets

Question 10

the fraud risk model

Answer 10

-opportunity
-rationalization
-pressure (motivation)

Question 11

Which characteristic of the fraud risk model can be controlled by management or the organization

Answer 11

opportunity

Question 12

management is often able to rationalize the commission of fraud by

Answer 12

reasoning that it is in the best interest of the company